Mr Macdonald said animal liberation campaigns were calling on international fashion brands to boycott Australian wool because of mulesing and in the process were threatening the profitability of the Australian wool.

"Animal liberation campaigner, PETA, is running a Save the Sheep campaign across the globe, perhaps they should consider a Save the Nats campaign here in NSW too?" he said.

"They are definitely in the wilderness if they don't see mulesing as an urgent issue."

Mr Macdonald said the NSW Iemma Government recognised mulesing as a vitally important issue for NSW producers and crucial to protecting the State's sheep flock from flystrike.

"One would expect that all side of politics in NSW would have an interest in representing and defending our wool industry here in the Parliament - but this doesn't seem to be the case,” he said.

"The Nationals today rejected the opportunity to debate the matter and acknowledge its importance.

"Instead they have done a classic about face and walked away from the issue.

"The Iemma Government has been very active on this issue and along with the NSW Farmers Association representing our farmers and their dedication to phasing out mulesing by 2010.

"Unlike the Nationals, we are standing shoulder to shoulder with farmers on this very important issue. We know the industry is working on finding alternatives to mulesing and that's what we wanted to tell the Parliament today.

"Our farmers are battling the worst drought on record. The last thing they need is kick in the guts from the Nationals saying mulesing is hardly a matter worthy of the Parliament."